Dynatrace (NYSE:DT) Issues Earnings Results

Dynatrace (NYSE:DT) released its quarterly earnings data on Monday. The company reported $0.44 earnings per share for the quarter, beating the consensus estimate of $0.41 by $0.03, FiscalAI reports. The company had revenue of $515.47 million for the quarter, compared to analyst estimates of $506.31 million. Dynatrace had a return on equity of 9.75% and a net margin of 9.55%.The company’s revenue was up 18.2% compared to the same quarter last year. During the same period in the prior year, the company posted $0.37 EPS. Dynatrace updated its FY 2026 guidance to 1.670-1.690 EPS and its Q4 2026 guidance to 0.380-0.390 EPS.

Here are the key takeaways from Dynatrace’s conference call:

• Dynatrace beat Q3 guidance across every metric, reported ARR of $1.97B (16% growth), raised full-year ARR guidance ~125 bps toward a path to $2B ARR, and the board authorized a new $1B share repurchase program.
• The company unveiled Dynatrace Intelligence—an agentic operations system built on Grail (its lakehouse) and Smartscape—positioning AI-driven, usage-based monetization through increased platform usage and agentic execution.
• Commercial momentum remains strong with three consecutive quarters of double-digit net new ARR, record new-logo ARR (164 new logos, >$160K average ARR per new logo) and average ARR per customer approaching $500K, driven in part by multiple seven-figure deals and large migrations.
• Consumption growth (>20% YoY) is outpacing ARR growth (16%), and management signaled that conversion of DPS/consumption into durable ARR and broader enterprise adoption of agentic AI will take time, making future ARR acceleration contingent on renewals and usage?to?contract conversions.

Dynatrace Price Performance

Shares of NYSE:DT opened at $36.77 on Wednesday. The stock has a market cap of $11.09 billion, a price-to-earnings ratio of 60.28, a P/E/G ratio of 2.85 and a beta of 0.84. The company has a 50 day moving average of $41.62 and a 200-day moving average of $46.06. Dynatrace has a one year low of $32.83 and a one year high of $63.00.

Analyst Upgrades and Downgrades

DT has been the subject of a number of recent analyst reports. DA Davidson dropped their target price on shares of Dynatrace from $65.00 to $50.00 and set a “buy” rating for the company in a research report on Tuesday. Barclays dropped their price objective on shares of Dynatrace from $57.00 to $47.00 and set an “overweight” rating for the company in a report on Tuesday. Raymond James Financial reissued a “market perform” rating on shares of Dynatrace in a report on Monday. Citigroup dropped their price target on Dynatrace from $64.00 to $60.00 and set a “buy” rating for the company in a report on Friday, January 16th. Finally, TD Cowen decreased their target price on Dynatrace from $65.00 to $55.00 and set a “buy” rating on the stock in a report on Wednesday, January 21st. Twenty analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $53.00.

Key Stories Impacting Dynatrace

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Q3 beat and guidance raise — Dynatrace reported stronger-than-expected revenue ($515.5M) and non-GAAP EPS ($0.44) and raised Q4 and FY26 guidance, signaling durable demand and better near-term earnings visibility. Dynatrace Inc (DT) Q3 2026 Earnings Call Highlights: Strong Growth and Strategic Advancements
• Positive Sentiment: $1.0B share repurchase — The board authorized a $1 billion buyback (about 9.8% of shares outstanding). That reduces float, supports EPS and signals management thinks the stock is undervalued. Buybacks also provide an immediate capital-return catalyst. Share Repurchase Program Announced by Dynatrace (NYSE:DT) Board of Directors
• Positive Sentiment: Strong subscription metrics & product momentum — ARR near $1.97B (+~20% Y/Y), net retention ~111%, rapid adoption of Log Management and new agentic AI (Dynatrace Intelligence) plus DevCycle integration position the company to expand wallet share and monetize AI/automation use cases. Dynatrace’s Earnings Win Makes One Thing Clear: This Software Is Essential
• Neutral Sentiment: Industry narrative and valuation debate — Analysts and commentators note DT is growing quickly but trades at a discount to peers (e.g., Datadog). That gap can mean upside if multiples re-rate, but it also keeps returns tied to execution. Dynatrace Is Still Growing Quickly Despite A Conservative Valuation
• Neutral Sentiment: Management tone on AI risk — Management downplayed AI threat to revenue and highlighted AI observability as a growth vector; useful context but dependent on enterprise AI adoption timing. DT Q4 Deep Dive: AI Observability Drives Expansion and Platform Momentum
• Negative Sentiment: Analyst target cuts and mixed ratings — Several firms trimmed price targets (Morgan Stanley, Wells Fargo, Scotiabank, BTIG) even as some keep buy/overweight views (Guggenheim, KeyCorp). Mixed analyst moves add short-term volatility and keep valuation risk visible. Analyst price target moves
• Negative Sentiment: Sector-wide multiple compression — Several commentators point out that cuts to targets are driven largely by sector valuation compression and rate/market sentiment rather than company-specific operational failures, which could cap near-term upside until multiples expand. Dynatrace stock coverage and analyst commentary

Dynatrace declared that its Board of Directors has initiated a stock repurchase plan on Monday, February 9th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the company to buy up to 9.8% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s management believes its shares are undervalued.

Insider Buying and Selling

In other Dynatrace news, EVP Dan Zugelder sold 7,505 shares of Dynatrace stock in a transaction on Wednesday, December 10th. The shares were sold at an average price of $45.27, for a total transaction of $339,751.35. Following the completion of the sale, the executive vice president owned 8,925 shares of the company’s stock, valued at approximately $404,034.75. The trade was a 45.68% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Daniel S. Yates sold 2,000 shares of the stock in a transaction on Monday, November 17th. The shares were sold at an average price of $46.69, for a total value of $93,380.00. Following the completion of the transaction, the chief accounting officer directly owned 23,380 shares in the company, valued at approximately $1,091,612.20. This trade represents a 7.88% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 9,843 shares of company stock worth $448,124. Insiders own 0.57% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Northwestern Mutual Wealth Management Co. increased its stake in Dynatrace by 21.3% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,548 shares of the company’s stock valued at $85,000 after purchasing an additional 272 shares in the last quarter. Jones Financial Companies Lllp grew its holdings in shares of Dynatrace by 19.2% in the 1st quarter. Jones Financial Companies Lllp now owns 2,161 shares of the company’s stock valued at $102,000 after buying an additional 348 shares during the period. Connecticut Wealth Management LLC bought a new stake in shares of Dynatrace in the 2nd quarter valued at $226,000. Voleon Capital Management LP acquired a new stake in Dynatrace during the 3rd quarter worth $221,000. Finally, Coldstream Capital Management Inc. raised its stake in Dynatrace by 10.5% during the 3rd quarter. Coldstream Capital Management Inc. now owns 4,604 shares of the company’s stock worth $223,000 after buying an additional 437 shares during the period. Institutional investors own 94.28% of the company’s stock.

Dynatrace Company Profile

Dynatrace is a global software intelligence company specializing in application performance management (APM), cloud infrastructure monitoring, and digital experience management. Its flagship offering, the Dynatrace Software Intelligence Platform, leverages artificial intelligence to provide real-time observability across distributed environments, including on-premises data centers, private clouds, public clouds and hybrid deployments. Organizations rely on Dynatrace to detect anomalies, troubleshoot performance issues and optimize end-user experiences through automated root-cause analysis powered by the company’s engine, Davis.

The Dynatrace platform comprises modules for full-stack application monitoring, digital experience monitoring, infrastructure monitoring and business analytics.